2016-11-23 10:51:09

Review and dynamics
Since the opening of today’s trading session the index S&P500 has been in the narrow range, the same as the other major U.S. stock indexes.

It is possible that traders will place profit-taking on the continuing rally in the USD and the US indices after the election of new President of the United States, and on the eve of the day off in the United States.

Investors, apparently, do not want to keep open positions before the day off tomorrow and a short day on Friday in the United States. Most of the positions are long, and their closing, even partial, can cause the decrease of the index.

It is still not clear what impact the policy of Trump will have on the U.S. economy.

The index S&P500 has been growing in the past 3 weeks regaining the losses of the previous 2 months. The index has exceeded recent annual highs in August at the level of 2192.0. The upper limit of the descending channels on the daily and weekly charts is near this level. Yesterday, the index has reached the new local highs at the level of 2203.0.

Our opinion
On the daily, weekly and monthly charts the indicators OsMA and Stochastic give buy signals.

The price has broken out the upper line of the descending channels on the daily and weekly charts near the level of 2192.0. It is likely that the rise in the index will continue next week. The positive trend in the U.S. stock market continues.

However, short-term correction is possible. It can reach support levels 2192.0, 2173.0, 2165.0 (highs of October) and 2155.0 (ЕМА200 on 4-hour chart, ЕМА50 on the daily chart). Breakout of the support level of 2155.0 may trigger deeper correction to the levels of 2130.0 (ЕМА144 on the daily chart) and 2115.0 (ЕМА200).

Breakdown of the level of 2102.0 ( Fibonacci 23.6% after the rise since February 2016 at the level of1828.0) can trigger further decline to the support level of 2050.0 (Fibonacci 38.2, ЕМА200 on the weekly chart) as part of the new descending channel on the daily chart, which jeopardize continuation of the uptrend in the index S&P500. Breakdown of support level of 2007.0 (Fibonacci 50.0%) will confirm the end of the bullish trend.

However, as long as the index S&P500 remains above support levels of 2115.0 (ЕМА200 on the daily chart) and 2102.0 (Fibonacci 23.6% after the rise since February 2016 at the level 1828.0), uptrend in the index will continue.

Support levels: 2192.0, 2173.0, 2165.0, 2155.0, 2145.0, 2130.0, 2115.0, 2102.0, 2070.0 and 2050.0.
Resistance levels: 2205.0, 2210.0 and 2250.0.

Trading tips
Sell Stop: 2198.0. Stop-Loss: 2205.0. Targets: 2192.0, 2173.0, 2165.0, 2155.0, 2145.0, 2130.0 and 2115.0.
Buy Stop: 2205.0. Stop-Loss: 2198.0. Targets: 2210.0 and 2250.0.

Above the summer highs at 2192.0
Above the summer highs at 2192.0

In the short-term ascending channel
In the short-term ascending channel